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Title: January Newsletter: Tax Shift

COCFeatured: True

COCShortDescription: The downtown vacancy rate has resulted in a problematic tax shift.

COCDescriptionHTML: <p>*Image: 2017 Property Tax Revenues</p>
<p>The disruptive change in Alberta’s economy has had severe implications for Calgary. While economists report signs of recovery, unemployment rates remain high and the downtown’s vacancy rate peaked at 28 per cent in 2018. <br /><br />The City provided a report in late 2018 on Calgary’s real estate market and the impact on property taxes. The collapse of downtown assessed values has led to a shift of non-residential property taxes to businesses outside the core. The chart shows the extent to which the downtown subsidized the rest of the city in 2017 and for decades prior. City Administration anticipates that downtown office property values will continue to decrease in 2019, causing substantial property tax increases to other parts of the city.</p>
<p>This crisis is real. Fundamental changes are needed to promote sustainable economic growth. In 2017, I convened a one-day summit that identified solutions to restore and strengthen the downtown economy. Some solutions included office-to-residential conversions, attracting post-secondary institutions, and improving public spaces to attract private investment in our city centre. I also pushed for the creation of a task force to ensure that all City and external stakeholders work together to develop a downtown recovery strategy, as well as an expert team to find financial solutions to the tax shift.</p>
<p>Strengthening and diversifying the downtown core is essential to addressing this historic tax shift. Calgarians are innovative problem-solvers. Together we can make the necessary changes.​</p>

COCShortDescription: The downtown vacancy rate has resulted in a problematic tax shift.

COCDescriptionHTML: <p>*Image: 2017 Property Tax Revenues</p>
<p>The disruptive change in Alberta’s economy has had severe implications for Calgary. While economists report signs of recovery, unemployment rates remain high and the downtown’s vacancy rate peaked at 28 per cent in 2018. <br /><br />The City provided a report in late 2018 on Calgary’s real estate market and the impact on property taxes. The collapse of downtown assessed values has led to a shift of non-residential property taxes to businesses outside the core. The chart shows the extent to which the downtown subsidized the rest of the city in 2017 and for decades prior. City Administration anticipates that downtown office property values will continue to decrease in 2019, causing substantial property tax increases to other parts of the city.</p>
<p>This crisis is real. Fundamental changes are needed to promote sustainable economic growth. In 2017, I convened a one-day summit that identified solutions to restore and strengthen the downtown economy. Some solutions included office-to-residential conversions, attracting post-secondary institutions, and improving public spaces to attract private investment in our city centre. I also pushed for the creation of a task force to ensure that all City and external stakeholders work together to develop a downtown recovery strategy, as well as an expert team to find financial solutions to the tax shift.</p>
<p>Strengthening and diversifying the downtown core is essential to addressing this historic tax shift. Calgarians are innovative problem-solvers. Together we can make the necessary changes.​</p>

This content represents the personal views and opinions of the Ward Councillor and should not be taken as a statement of policy of The City of Calgary. The inclusion of any external content does not imply endorsement by The City of Calgary.​